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eBay Inc. revenue topped $2.6bn in Q218

By Dan Wilson July 18, 2018 - 10:28 pm

eBay Inc., the parent firm of the eBay marketplace that also owns a variety of other companies including Gumtree and StubHub, has delivered its report on the second quarter of 2018 this evening and revealed that total eBay Inc. revenue in the three month period to the end of June was $2.6bn.

We’ll look at some of the detail below but the immediate reaction from the market has been mixed (although it can take some days to settle down to a consensus in any case). Whilst there are some positive points, growth in some areas, and a massive share buy-back stock will be seen as positive, the guidance given to investors for the year to come is considered a little shy by many analysts, it seems.

The eBay Inc. revenue total was $2.6 billion, up 9% on an as-reported basis and 6% on a foreign exchange (FX) neutral basis, primarily driven by gross merchandise volume (GMV) of $23.6 billion, up 10% on an as-reported basis and 7% on an FX-Neutral basis.

According to the press release, during the quarter, eBay delivered GAAP net income from continuing operations of $638 million, or $0.64 per diluted share and Non-GAAP net income from continuing operations of $533 million, or $0.53 per diluted share. The company generated $372 million of operating cash flow and $188 million of free cash flow from continuing operations while also repurchasing approximately $1.0 billion of its common stock in the quarter.

In Q2 we continued to execute our strategy, making improvements to the core eBay experience. At the same time, we pursued significant opportunities in advertising and payments. As we look ahead to the second half of 2018, we expect acceleration in our core business and continued strong growth in earnings.
– Devin Wenig, President and CEO of eBay Inc.

In the second quarter, eBay expanded its number of active buyers by 4% across all its various platforms to a total of 175 million global shoppers. Underlying total eBay Inc. performance, the Marketplace platforms delivered $2.1 billion of revenue and $22.6 billion of GMV. Marketplace revenue growth was 9% and GMV increased 11%. The eBay marketplace is still key to the overall health of the company, basically.

StubHub remains a bit of a star player though and delivered revenue of $246 million, up 4% on an as-reported basis and 3% on an FX-Neutral basis, and GMV of $1.1 billion, up 5% on both an as-reported and FX-Neutral basis. Classifieds platforms delivered revenue of $259 million, up 18%.

  • lotus nut
    4 weeks ago

    Poor results coupled with another 300 job losses!!
    Share price down 5.7% this morning though could bounce back a little, stock now 3% less than a year ago!
    I looked at the presentation info and does not look too good despite the spin and fluf they keep saying about futures etc, investers seem to be worried.

    Q3 will be critical for ebay now, could we see some seller perks to increase sales and revenue?, i very much doubt it!.

  • r kramer
    4 weeks ago

    as an analyst following eBay for many years, this Q was easy to see would be weak… I give the CEO another 6 mos to deliver on the promised acceleration in GMV or all teh many initiatives will have been wasted money.. sadly looks like a case of a good platform poorly managed and lacking a tech visionary to animate it and revive active buyer growth and deliver real underlying GMV growth

  • Rob
    4 weeks ago

    I am sure their profits will start to go back up when the 4% starts to kick in for poor return rates for item not as described, damaged during delivery etc.
    Couple of weeks ago was told this would only be the case if you account was below standard due to cases being opened and closed in the buyers favour if you did not sort it out. But speaking to someone last night this is not the case and if you have a high number of returns for damages, not as described you will be charged an additional 4%

    • SAM
      4 weeks ago

      Well if they are going to charge sellers 4% FOR actually dealing with issues. It is just another money grab from them. They are essentially just looking for any way to fleece the sellers now, they are constantly nailing more nails into their coffin, and playing into Amazons hands.
      Problems occur this is life, and on eBay due to the type of platform they have ran and some of the behaviour they eBay themselves have encouraged over the years the problems are even more common due to FreeBay Scams.
      Over the years eBay has caused 10 times the issues of all other markets including Amazon combined.
      We went through all this with the previous draconian Defects system they had, it just increased the sellers sending stock into FBA.
      Ever since Weing appeared it has am afraid just been a cash grab, the man needs to go and get a job in a bank he would suit the environment.

      The UK really needs something fresh and new in the market.

    • Rob
      4 weeks ago

      Seems ebay is going back to 3 or 4 years ago where every time you sneezed you were hit with a defect. Now when you get defects you will get hit with penalties.
      When things go wrong that is often the chance a business gets to put things right and provide excellent customer service. Yet what is the incentive to give excellent customer service when buyers open not as described cases even thou the item is as described they just have not ready the listing.
      All this does is start taking returns off site again and asking customers to contact you first to sort things out before opening a case.
      If something has gone wrong I will do the right thing. But if getting stung with 4% penalties I am less likely to go the extra mile.

    • alan paterson
      4 weeks ago

      @ Rob, couldn’t agree more and couldn’t have put it better.

  • 4 weeks ago

    Yeah Ebay’s stock dropped over 20% about a week ago. They are running scared and implemented a pointless ” Best Offers ” button during last week. Smells of desperation

  • Will
    4 weeks ago

    @Sam – If your looking for a fresh alternative marketplace in the UK, Buuy.co.uk has since reopened but only in app version at moment. They have zero fee’s. The desktop version should be coming soon.

    Ecrater has some new features such as providing discount’s off items and providing coupons to potential buyers. I for one welcome the updates on Ecrater. It seems to be expanding now a mass exodus of Ebay sellers are jumping ship and selling elsewhere.